Forms of Short-term Financing/Export Credit Insurance - Revision history

wikademia>Eme: moved Beta:Forms of Short-term Financing/Export Credit Insurance to Forms of Short-term Financing/Export Credit Insurance

2009-11-08T17:07:23Z

moved Beta:Forms of Short-term Financing/Export Credit Insurance to Forms of Short-term Financing/Export Credit Insurance

← Older revision	Revision as of 17:07, 8 November 2009
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wikademia>Wikademia: moved Archive:Forms of Short-term Financing/Export Credit Insurance to Beta:Forms of Short-term Financing/Export Credit Insurance

2009-06-08T23:13:27Z

moved Archive:Forms of Short-term Financing/Export Credit Insurance to Beta:Forms of Short-term Financing/Export Credit Insurance

← Older revision	Revision as of 23:13, 8 June 2009
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wikademia>Wikademia: moved Forms of Short-term Financing/Export Credit Insurance to Archive:Forms of Short-term Financing/Export Credit Insurance

2009-05-27T05:45:45Z

moved Forms of Short-term Financing/Export Credit Insurance to Archive:Forms of Short-term Financing/Export Credit Insurance

← Older revision	Revision as of 05:45, 27 May 2009
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wikademia>Wikademia at 17:59, 12 April 2009

2009-04-12T17:59:59Z

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	~~==Export Credit Insurance==~~
	United States banks do not consider foreign accounts receivable to be eligible for financing, the reason being that the recourse to collect against them is limited and expensive. The United States government as well as other governments throughout the world have realized such and established guarantees to banks in the form of payment insurance to stimulate exports. Ex-Im Bank provides United States banks with a guarantee of payment for specific transactions. Some states have created similar local programs. They often work in conjunction with Ex-Im Bank to provide guarantees to lenders to stimulate their local economies. These programs allow banks to lend against a borrower’s inventory and accounts receivable, relying on the Ex-Im Bank or the state program (a domestic source to the bank) to pay in the case of default. This type of guarantee provides insurance of payment.		United States banks do not consider foreign accounts receivable to be eligible for financing, the reason being that the recourse to collect against them is limited and expensive. The United States government as well as other governments throughout the world have realized such and established guarantees to banks in the form of payment insurance to stimulate exports. Ex-Im Bank provides United States banks with a guarantee of payment for specific transactions. Some states have created similar local programs. They often work in conjunction with Ex-Im Bank to provide guarantees to lenders to stimulate their local economies. These programs allow banks to lend against a borrower’s inventory and accounts receivable, relying on the Ex-Im Bank or the state program (a domestic source to the bank) to pay in the case of default. This type of guarantee provides insurance of payment.

wikademia>Wikademia: Text replace - 'TF7.1' to 'ntnes'

2009-04-10T17:21:42Z

Text replace - 'TF7.1' to 'ntnes'

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	==Export Credit Insurance==		==Export Credit Insurance==

wikademia>Wikademia: Text replace - 'Category:International Business' to 'Category:International business'

2009-04-09T05:11:04Z

Text replace - 'Category:International Business' to 'Category:International business'

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	<div style="float:right;">[[Forms of Short-term Financing/Bank Financing\|Prev]] \| [[Forms of Short-term Financing/Other Guarantees Linked with an Export Product\|Next]]		<div style="float:right;">[[Forms of Short-term Financing/Bank Financing\|Prev]] \| [[Forms of Short-term Financing/Other Guarantees Linked with an Export Product\|Next]]

	[[Category:International ~~Business~~]]		[[Category:International business]]

wikademia>Wikademia: 2 revisions

2009-04-08T04:18:04Z

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wikademia>MSUglobal at 16:24, 28 September 2007

2007-09-28T16:24:45Z

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	::a. when the client is worried only about non-commercial issues		::a. when the client is worried only about non-commercial issues

			<div style="float:right;">[[Forms of Short-term Financing/Bank Financing\|Prev]] \| [[Forms of Short-term Financing/Other Guarantees Linked with an Export Product\|Next]]

	[[Category:International Business]]		[[Category:International Business]]

wikademia>MSUglobal: New page: {{TF7.1}} ==Export Credit Insurance== United States banks do not consider foreign accounts receivable to be eligible for financing, the reason being that the recourse to collect against t...

2007-09-25T20:14:32Z

New page: {{TF7.1}} ==Export Credit Insurance== United States banks do not consider foreign accounts receivable to be eligible for financing, the reason being that the recourse to collect against t...

New page

{{TF7.1}}

==Export Credit Insurance==
United States banks do not consider foreign accounts receivable to be eligible for financing, the reason being that the recourse to collect against them is limited and expensive. The United States government as well as other governments throughout the world have realized such and established guarantees to banks in the form of payment insurance to stimulate exports. Ex-Im Bank provides United States banks with a guarantee of payment for specific transactions. Some states have created similar local programs. They often work in conjunction with Ex-Im Bank to provide guarantees to lenders to stimulate their local economies. These programs allow banks to lend against a borrower’s inventory and accounts receivable, relying on the Ex-Im Bank or the state program (a domestic source to the bank) to pay in the case of default. This type of guarantee provides insurance of payment.

These programs have been recognized by independent insurance carriers as a potential revenue- generating source, enticing them to enter this market and providing competition for Ex-Im Bank. This free market competition keeps rates low for this type of credit facility and provides alternative sources for a borrower. The guarantee allows the banks to fund inventory; it is limited to Ex-Im Bank and is considered pre-shipment financing. The funding of post- shipment financing is provided by both Ex-Im Bank and private insurance carriers in the form of guarantees to a seller’s bank against accounts receivables.

The range of risk varies from one credit insurance agency to another, but here are examples of some risks covered on a standard basis: <br>

1. Commercial risks only
::a. company insolvency, including both compulsory and voluntary liquidations
::b. individual insolvency (bankruptcy)
::c. protracted default (slow pay)
::d. receivership
::e. the appointment of an administrator.
2. Commercial Risks and Political Risks
::a. commercial risks including the insolvency of a customer and any default on payment (See above)
::b. financial losses resulting directly from political events, economic difficulties, legislative or administrative measures occurring in a country covered for these risks which prevent or delay the transfer of the sums paid by a buyer or its guarantor (transfer risk)
::c. risks of a military or a civil war, a revolution, riot or insurrection
::d. general moratorium decreed by the government of a buyer’s country or by any third country covered for these risks through which payment must be made
3. Political Risks Only
::a. when the client is worried only about non-commercial issues

[[Category:International Business]]